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 Approved by the Senate Finance Committee on a 20 to 6 vote, the
legislation would prohibit Congress from amending trade deals,
instead allowing for just up-or-down votes.
It is vital to closing the Trans-Pacific Partnership, an agreement
that would link a dozen economies and cover a third of global trade.
TPP is central to President Barack Obama's strategic shift toward
Asia.
Fast-track authority could now go to the full Senate for a vote as
early as next week, just as Japanese Prime Minister Shinzo Abe is
due in Washington to address lawmakers at a joint meeting of
Congress, but it needs to be approved by the House of
Representatives as well.
On Tuesday, Japan's top trade negotiator sounded an optimistic note
on reaching a deal with the United States.
"Tonight’s Committee action marks a pivotal moment for international
trade policy and reflects years of true bipartisan work," said
committee chairman Orrin Hatch, a Republican.
After lively debate in the committee, senators rejected an amendment
that would have exposed nations that manipulate their currencies to
sanctions, although it could be resurrected in the House of
Representatives. Japan has warned that tough currency provisions in
fast-track could kill the TPP.
The panel instead backed two other provisions beefing up rules
against currency manipulation in a separate bill accompanying the
fast-track legislation.
Senators defied warnings from the Obama administration and backed a
change opening the door to import duties against countries found to
be manipulating their currencies.
The other provision, supported by the administration, would allow
the United States to consider restricting government purchases from
currency-cheating nations or even block them from future trade
deals.
The bill was approved along with measures to extend both trade
preferences for African nations and aid to workers who lose their
jobs due to trade.
Many Democrats fear new trade deals will cause a repeat of the
factory closures and job losses seen after the North American Free
Trade Agreement between the United States, Canada and Mexico was
approved in 1993.
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Democratic senator Bob Casey, who voted against the bill, said it
was a "fast track to fewer jobs and lower wages."
But the bill is backed by mainstream Republicans, farmers and
business groups who think trade deals in the pipeline will cut
tariffs on U.S. exports and set higher standards for U.S.
intellectual property.
The White House sees the TPP as a counterweight to China's influence
in the Asia-Pacific and has warned that the Asian giant will set the
rules for trade if the United States does not move ahead with the
TPP, which is near completion.
TPP must pass Congress this year to avoid being bogged down in the
run-up to the 2016 U.S. elections, where it could put Hillary
Clinton, who is seeking the Democratic nomination for president, in
a difficult spot.
Clinton, who championed TPP as secretary of state under Obama, has
been cautious in her stance. On Tuesday, she said any trade deal had
to "produce jobs and raise wages and increase prosperity and protect
our security."
The bill will likely face a tougher fight in the House of
Representatives than the Senate, where Republicans would need to
pick up only six Democratic votes to avoid delaying tactics,
assuming there are no defections from the Republican side.
(Reporting by Krista Hughes; Additional reporting by Richard Cowan
and David Lawder; Editing by Shri Navaratnam)
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